More than a quarter (26 per cent) of UK bank account holders use online services but with little impact on the use of of branch-based services, says analyst Gartner.

And the use of internet banking is linked to higher use of other channels such as cash machines and telephone banking, according to the report.

"Adoption of e-banking is now taking place within the mainstream of consumers, among people who use new channels and services if, and only if, they see intrinsic value from the new technology," said Gartner financial services research director David Schehr.

"Online banking has clearly made this transition in consumer minds," he said.

Banks need to use the internet to improve customer communication and differentiate themselves from competitors, said Schehr.

"They should leverage this channel to serve their clients and strengthen relationships."